Core Viewpoint - The Chinese automotive service industry, driven by over 359 million vehicles, is undergoing a significant transformation, with the market expected to reach 1.9 trillion yuan by 2025 and 2.2 trillion yuan by 2030 [1][3]. Industry Overview - The automotive service sector in China is characterized by a fragmented competitive landscape, comprising 4S dealerships, large chain platforms, regional chains, and numerous independent repair shops [1]. - The industry is currently in a deep adjustment phase, with a reported 5% decline in market value and a 4% decrease in service visits in the first half of 2025 [3]. Company Performance - Tuhu Car Maintenance, a leading player in the automotive service industry, reported a revenue of 7.88 billion yuan in the first half of 2025, marking a 10.5% year-on-year increase, and an adjusted net profit of 410 million yuan, up 14.6% [4][5]. - The company's stock price surged by 11.44% following the release of its strong financial results [5]. Operational Expansion - Tuhu Car Maintenance has established the largest offline automotive service network in China, with 7,205 service locations as of June 30, 2025, a 14.2% increase from the previous year [6]. - The company has focused on expanding into lower-tier cities, with over 60% of new stores opened in second-tier and below cities, significantly boosting its market presence [6]. Product and Service Strategy - Tuhu employs a dual-track strategy, collaborating with both international brands and domestic manufacturers to cater to various consumer needs [7]. - The company has seen a 60% year-on-year increase in revenue from its quick repair services, driven by the rising average age of passenger vehicles [8]. Technological Advancements - Tuhu has integrated AI technology into its operations, enhancing service quality and operational efficiency across its network of over 7,200 service locations [11]. - The company has developed a comprehensive automotive parts database with 9.5 million SKUs, achieving a matching accuracy of 99.99% [12]. Customer Engagement and Satisfaction - Tuhu Car Maintenance boasts a user base of 150 million registered users, with a customer satisfaction rate exceeding 95% and a repurchase rate of 64% [14]. - The company emphasizes long-term strategies and technological investments to maintain its leading position in the automotive service industry [14].

Core Viewpoint - Tuhu Car Maintenance has demonstrated robust and high-quality growth in its mid-2025 performance, adhering to a dual-track strategy of "domestic brands breaking through upwards and international brands rooting downwards" while deepening efficiency across the entire supply chain [1] Revenue and Profitability - In the first half of 2025, Tuhu Car Maintenance achieved total revenue of 7.9 billion RMB, a year-on-year increase of 10.5% from 7.1 billion RMB in 2024, maintaining its position as the leading independent automotive service provider in China [2][3] - Gross profit reached nearly 2 billion RMB, up 7.4% year-on-year, with adjusted EBITDA of 483 million RMB, reflecting a 7.5% increase [4] - Adjusted net profit was 410 million RMB, a 14.6% increase year-on-year, indicating enhanced profitability and quality [4] User Growth and Store Expansion - The user base expanded significantly, with 26.5 million cumulative trading users, a 23.8% increase year-on-year, and an average monthly active user count of 13.5 million, up 17.5% [6][8] - The number of Tuhu workshops reached 7,205, a 14.2% increase from 6,311 in 2024, with over 60% of new stores located in second-tier and lower cities [8][10] Brand and Service Enhancement - Tuhu Car Maintenance has invested in brand building and service experience, appointing Han Han as the first "professional image ambassador" to enhance brand trust [9] - The company established the "Gold Medal Film Testing Center" for product evaluation and improved customer service through an AI-driven intelligent customer service system, leading to a 2% increase in conversion rates and a 7% rise in customer satisfaction [9] Strategic Initiatives and New Business Development - The company is pursuing a dual-track strategy while actively developing new business areas, including tire and maintenance services, with significant growth in fast repair and electric vehicle services [11][13] - The fast repair business saw over 60% revenue growth, while the electric vehicle segment experienced an 83.5% increase in trading users, indicating strong market demand [14] Future Outlook - The automotive aftermarket is expected to continue growing due to increasing vehicle ownership and aging vehicle structures, with Tuhu Car Maintenance well-positioned to leverage its user-store synergy and ongoing strategic initiatives to maintain its industry leadership [14]

Core Viewpoint - Tuhu Car Maintenance has demonstrated robust and high-quality growth in its mid-2025 performance, adhering to a dual-track strategy of "domestic brands breaking through upwards and international brands rooting downwards" [1] Revenue and Profitability - In the first half of 2025, Tuhu Car Maintenance achieved total revenue of 7.9 billion RMB, a year-on-year increase of 10.5% from 7.1 billion RMB in 2024, maintaining its position as the leading independent automotive service provider in China [2][3] - Gross profit reached approximately 2 billion RMB, up 7.4% year-on-year, while adjusted EBITDA was 483 million RMB, reflecting a 7.5% increase [4] - Adjusted net profit was 410 million RMB, a significant rise of 14.6% compared to 358 million RMB in the previous year, indicating enhanced profitability and quality [4] User Growth and Store Expansion - Tuhu Car Maintenance's user base expanded significantly, with 26.5 million cumulative trading users, a 23.8% increase year-on-year, and an average monthly active user count of 13.5 million, up 17.5% [7][8] - The number of Tuhu workshops reached 7,205, a 14.2% increase from the previous year, with over 60% of new stores located in second-tier and lower cities [10][8] Operational Efficiency and Cost Control - The company has implemented various measures to enhance operational efficiency and control costs, including the "Tuhu New Youth" project to support new franchisees and the "10 Billion Subsidy, 10,000 Stores Together" initiative [10] - AI video recognition technology has been utilized to improve hygiene and compliance governance, enhancing user satisfaction with store environments [10] Dual-Track Strategy and Emerging Business - Tuhu Car Maintenance is committed to its dual-track strategy, focusing on upgrading its product matrix while actively developing emerging businesses [11] - The tire business has seen significant growth, with a focus on high-end products and a notable increase in sales in lower-tier cities [11] - The fast repair and new energy vehicle sectors have shown strong performance, with fast repair revenue growing over 60% year-on-year and new energy vehicle transactions increasing by 83.5% [12][11] Future Outlook - The automotive aftermarket is expected to continue growing due to increasing vehicle ownership and aging vehicle structures, with Tuhu Car Maintenance poised to maintain its industry leadership and create long-term value for stakeholders [12]